SBI Cards IPO is expected to be launched between March 2-5, 2020. SBi Cards IPO is expected to be set between Rs 745-775 per share.

SBI Cards IPO is expected to be launched between March 2-5, 2020

SBI Cards IPO is expected to be set between Rs 745-775 per share..

After receiving in-principle approval from SEBI, State Bank of India is likely to file papers for SBI Cards IPO with Registrar of Companies (RoC) on Tuesday. RoC is an office under the MCA and deals with the administration of companies and limited liability partnerships in India. An approval from RoC would be the go-ahead required before SBI launches the IPO for its cards business.

According to the sources, a total dilution of around 14 percent is expected to be done through SBI Cards IPO via an Offer For Sale (OFS) route. Out of the total of 14 percent, SBI is likely to dilute 4 percent whereas the balance 10 percent will be diluted by private equity firm, Carlyle Group.

SBI owns 74 percent stake, Carlyle Group owns 26 percent stake in SBI Cards. The offer is expected to help SBI raise Rs 2,780-2,880 crore. The offer price for SBI Cards IPO is expected to be set between Rs 745-775 per share giving the company a market cap of around Rs 69,500-72,000 crore.

The IPO is expected to be launched between March 2-5, 2020. Kotak Mahindra Capital Company, SBI Capital Markets, DSP Merrill Lynch, Axis Capital, HSBC Securities, and Capital Markets, and Nomura Financial Advisory and Securities are the book-running lead managers to the issue.

Earlier this month, Rajnish Kumar, SBI Chairman had said that the SBI Cards IPO would be launched during the current quarter.

SBI Cards and Payment Services has an 18 percent market share next to HDFC Cards that holds a 27 percent market share. The company had 9.4 million outstanding cards as of the end of September. According to the draft prospectus, the company expects the number of credit cards to increase at an annual rate of 25 percent per year...